Overview
１. Introduction
This is a report on the peer review of Fuji Electric Systems Co., Ltd. (FES).The peer
reviews of Japan Nuclear Technology Institute (JANTI) are conducted by review teams
comprising JANTI experts and JANTI members. The review team visits the facilities of
JANTI members to identify the issues and good practices of the members, which are
beneficial for other members, by reviewing the activities related to nuclear safety with theirfull knowledge and experience. The goal of JANTI’s peer review activity is to improve
the safety culture of the whole nuclear power industry.

2. Overview of the Organization Reviewed
Fuji Electric, the predecessor to FES, was established in 1923 with the capital andtechnology tie-up between Furukawa Electric and Siemens, and took part in theconstruction of Tokai Power Station, the first commercial nuclear power plant inJapan.
The Kawasaki block of FES comprises the Kawasaki Plant - which started operation in1925 - as well as the J-Project Head Office, Nuclear Power Administration Department,
Thermal Power Administration Department, Hydropower Administration Department. andaffiliated companies.
This review is for the nuclear power division of the Kawasaki block, including the
J-Project Head Office, the Nuclear Power Administration Department, and the Nuclear
Power Department of the Kawasaki Plant.
The nuclear power division of the Kawasaki block has carried out business in “design ofhigh-temperature gas cooled reactors,” “handling and processing of radioactive waste,” and“handling and transport of nuclear fuel, etc. by remote operation” as its core technologies.
The equipment handled by the nuclear power division covers gas cooled reactors, fast
reactors, reprocessing equipment, MOX fuel fabrication equipment, and waste processing
equipment. With respect to gas cooled reactors, this division participated in the constructionof the Tokai Power Station; and has manufactured nuclear reactor equipment, as well as fuelhandling and storage equipment at the High Temperature Engineering Testing Reactor
1

(HTTR). With respect to fast reactors, the fuel handling and storage equipment, as well as
waste processing equipment, for the prototype fast breeder reactor, “Monju” wasmanufactured by this division. As for reprocessing equipment, manufacturing of handlingequipment, testing equipment, cranes and shielded containers, etc. for high-level radioactive
waste vitrification buildings and solid radioactive waste storage buildings of the Rokkasho
Reprocessing Plant, this was carried out through the prime contractor. Recently, the division,leveraging its experience to date, has been involved in MOX fuel fabrication facilities.
The Kawasaki block has approximately 1,100 employees (as of June 2006), of whom
approximately 80 people belong to the nuclear power division (as of November 2007,
excluding seconded people). The J-Project Head Office handles project management duties
related to MOX fuel fabrication facilities, and the Nuclear Power Administration Department
handles nuclear power equipment project management duties, duties related to engineering,
design, R&D, and quality assurance, as well as management duties related to construction
and maintenance. The Nuclear Power Department of the Kawasaki Plant has approximately
10 people heading manufacturing and work management, quality assurance, and testing andinspection for machinery of nuclear facilities.

3. Review Approach and Points
This review focused on the design control and manufacturing management of nuclear
equipment, communication between top management and employees, and initiatives inquality assurance linked to nuclear safety.
Specific review areas were “organization and management," “education and training,” and“design and manufacturing,” as well as “human error prevention,” which is an important
issue for JANTI.

4. Conducting the Review(1)

Review Dates
From Wednesday, November 28th to Friday, November 30th, 2007

(2)

Composition of Review Team
Team leader: an expert from Nuclear Safety Network Division, JANTITeam members: five members total, with four experts and the team leader(one from Nuclear Fuel Industries, Ltd.; one from Electric Power Development2

Co., Ltd.; two from Nuclear Safety Network Division, JANTI)(3)

Responsibilities of review groups
Group A: organization and management, human error prevention
Group B: education and training, design and manufacturing

5. Review Schedule
The review was carried out according to the schedule shown below over a three-day
period.

3

Review Schedule
Group AGroup B

（Organization and Management, Human Error Prevention）（Design and Manufacturing, Education and Training）

Peer Review Team Office Meeting, preparation
Overall team meeting
Opening (Greeting, member introductions, etc.）
AM
Interview with Site Superintendent class

Ⅰ．Organization/management GeneralDocuments

GeneralDocuments

Wed.

Managers

11/28

・Structure of organization

Ⅱ．Education/training
Ⅲ．Design/manufacturing

and responsibilities
・Organization
Ⅰ．Organization/management

policies/objectives

Interviews

Ⅱ．Education/training
Ⅲ．Design/manufacturing

・Manager leadershipPM

GeneralDocuments

Staff
・Education/training
・Effective design management

Interviews

Managers
・Education/training
・Effective manufacturing
management

Interviews

Staff
・Education/training
・Effective manufacturing
management

Interviews

Morning meeting

Event observation

・Quality assurance system
・Developing safety culture
Staff
・Developing safety culture,

Interviews

improving ethics
・Group meetings
・Team meeting・Coordination with hostⅠ．Organization/management
Ⅳ．Human error

Morning meeting

Event observation

GeneralDocuments
Ⅱ．Education/training

AM
Ⅰ．Organization/management

Ⅳ．Human error

Thu.
11/29

Initiatives in industrial safety
Human error prevention

Documents

meeting

Managers, staff
・Education/training
・Effective design control

Managers

Staff・Organization/management Documents

・Education/training

Ⅰ．Organization/management
Staff
・ Organization/management(continued)

Ⅱ．education/training

・Effective design control

Ⅲ．Design/manufacturing

Managers

Documents

・Education/training
・Effective design control[Verification of Facts]
・Group meetings, team meeting, coordination with host・Development of closing report[Verification of facts]
AM

Final coordination with host / final revision of closing report
Preparation for closing

Fri.
11/30

PM

Closing (explanation of results, etc.)

4

Field observation

Ⅲ．Design/manufacturing

Field observation

Risk assessment(continued)
PM

Observation of knowledge transfer

Interviews

Interviews

Interviews6. Review Method, Review Areas and Organization of Review Results
The review methods, areas and organization of results are described below.

6.1 Review Methods(1) Document review
Work policies and procedures for each review area were explained, and related
documents were shown.

(2) Interviews
Interviews were conducted of over 50 persons on the theme of “initiatives for nuclear
safety, etc.,” including top management; namely, the General Manager of the J-Project
Head Office, the General Manager of the Nuclear Power Administration Department,
management level employees, and various staff. In addition, questions that arose fromdocument review were examined during the interviews.

(3) Field observations
Direct observation was made in order to understand how activities in the field werebeing carried out, and the activities of the nuclear power division were reviewed in linewith results of document review and interviews.
The peer review team, upon conducting document review, interviews and fieldobservation, had frank discussions with the nuclear power division, providing theinformation and cases for reference - such as best practices in the industry.

6.2 Review Areas
The three areas of “organization and management,” “education and training,” and“design and manufacturing,” were reviewed, as was the area of “human error prevention.”

6.3 Organization of Review Results

5For each review area, document review, interviews and field observations were carried out,
and good practices and suggestions for improvement were identified.
The definition of a “good practice” is “an outstanding practice or process of the division
which enhances nuclear safety with accuracy, effectiveness and originality, resulting in
excellent performance; and should be shared, not only with other JANTI members, but also
within the entire nuclear industry.”“Suggestions for improvement” are “suggestions for further improvement in activities fornuclear safety in the division, achieved by comparison with the best practices in the nuclear
industry, from the perspective of aiming for the highest level of nuclear safety." To that end,suggestions for improvement can be made for the activities that are above the standard in the
nuclear industry.

7. Summary of Interviews with the top management of the nuclear power
division
A summary of the interviews with top management of the nuclear power division is asfollows.

(1) Initiatives to develop and improve safety culture
FES led the construction of the Tokai Power Station as a “front-runner.” This has been
passed down as the DNA, or the legacy of the nuclear power division. In order toimprove safety, quality and technology, the division is fully utilizing its DNA, or its
legacy, as it takes initiative with a pioneering spirit. With safety as the starting point, thefollowing initiatives are considered to be leading toward the development of a safety
culture.
1) Making high-quality products, sending them out into the world, and having themused by customers. Good products are made when the maker and the user are closely
connected.
2) Some projects are carried in collaboration with affiliated companies and othermanufacturers. With respect to “Fugen,” “Monju,” and “HTTR” projects, the companies
that joined the projects combined their strengths and supplemented each others'
weakness mutually with synergistic cooperation.
3) With respect to the affiliated companies, an approach of nuclear power safety first,
6and compliance with this approach, is requested through auditing; also, efforts weremade in guidance, improvement, and development of manufacturing processes.

(2) Strengths of, and issues facing, the nuclear power division of the Kawasaki area
This division excels in the field of remote handling technology, built up from “Fugen,”“Monju,” “HTTR” and other projects. Through large-scale national projects, everyone inthis division has built up the same experience. However, a major issue is passing on suchtechnology once the project has been completed. Currently, the nuclear power division isin the preparation period for its next major project.

(3) Status of activities of the nuclear power division
The nuclear power division has meetings, including; the Business Leader (BL)
Meeting, Executive Board Meeting, and Department Chief Meeting. The work progress(costs, schedules, etc.) is confirmed in weekly or monthly meetings. Furthermore, thesituation with initiatives for projects, and information on customer relations, etc. is
obtained as needed.

(4) Expectations of the top management of the nuclear power division for managers
Managers are expected to pursue the dream and adventurous spirit of manufacturing sothat initiatives are carried out in a positive manner. The question of “what do you want to
do?” is important, and must be asked before considering “what can you do?” In
conversations with managers, “what do you want to do?” is always being asked.

(5) Communicating the policies of top management of the division to front line workers in
the field
FES has many businesses related to the social infrastructure; and all of its employees,
from the president down, are certainly making quality the most important point, with“quality-centric business operations” set in the “basic policy of quality activities.” Basedon the quality policy of the company, quality objectives for each division are set, andthese quality policies and quality objectives are communicated throughout every level ofthe company and implemented. Implementation status is to be followed and reported ona monthly basis.
The policies of top management are conveyed at the beginning of the year, and are
7reflected in individual work improvements. With respect to problems arising in thedepartments, the BL Meeting, Executive Board Meeting and Division Chief Meetings
are held to discuss the problems and strive to elucidate the issues. Furthermore, theJ-Project Head Office Division Chief meeting, held once every two weeks, determines
the level of awareness and grasps the implementation status. Here, upper-level
management becomes the listening side, and also plays an indirect connective role
regarding the progress of improvements, problems in the cooperation with othercompanies, and other related problems.
Opportunities such as year-end and New Year greetings, high quality and reliability(HQR) Committee News, and greetings of the fiscal year are used to convey thethoughts of top management.
Of these opportunities, HQR News has been published since October 1999, and thethoughts of top management are conveyed on paper. Since relying solely on articles thatare visually appealing leads to a drought of ideas, various approaches and initiatives in
the field are made into articles and sent to the relevant persons via e-mail, so thateveryone can read them. The continued publication of the HQR News is one of thecompany’s strengths.
The fruit of these activities' effects can be seen, to an extent, in the customer's appraisalof us. At a visit with a customer for after sale care of a delivered product, their appraisalof us can be seen through their eyes.

(6) A culture of reporting (Are various problems in the field being reported?)
Upper-level management attends department meetings in all divisions as observers,and makes efforts to directly listen to opinions and requests. Furthermore, meeting
minutes are circulated through upper-level management, and they receive reports on adaily basis. While reporting usually conjures images of formal meetings, at FES, theimmediate reporting of problems has been established as a part of one’s daily duties. In
the past, reports of problems would be received the next morning; but recently, reports
are being received immediately through mobile phone e-mail. With respect to reports tothe president and top management, rules have been set for quick reports in case of an
accident.
Furthermore, one can truly feel that they are making a real difference, because
problems are reported immediately after they arise. Problems concerning people, money8

or things are immediately reported. An environment with a good atmosphere and areporting culture has been achieved.

(7) Initiatives for knowledge transfer
The J-Project Head Office and Nuclear Power Administration Department, as ameasure to prevent nonconformities, have created manuals, collected instances ofnear-miss events, passed down error events, and more. Furthermore, a database ofnonconformities

experienced

withcompany

products,

inconstruction

andcommissioning of the JNFL reprocessing plant, will be reflected in the design work of
the next large-scale project.
The J-Project Head Office, which directly reports to the president, undertakes
initiatives in a project structure under the supervision of a director in charge. In
preparation for our next large-scale project, the J-Project Head Office and Nuclear
Power Administration Department has created a map of the technology required, and has
extracted the technologies that need to be transferred. Furthermore, the divisions
responsible for these technologies have been confirmed, and a plan is underway tosecure necessary support from the head offices of other operations as well.
The Nuclear Power Administration Department has been carrying out R&D for thedivision, including trial manufacturing and testing of equipment, etc., and this has
become an excellent opportunity for knowledge transfer.
As for the design review, when a new design is implemented, it is a good opportunity
to confirm whether one’s own design is excessive or deficient, and whether pastexperience has been reflected; this is also very helpful in knowledge transfer.

(8) Expectations for the peer review
The peer review is to raise mutual awareness, and we want to confirm whether what
we have stated is actually taking place in the field, through interviews to be conducted
later. We expect to have spirited discussions, where we are on the same level and candid
opinions can be given. We also want to compare the good practices being implemented
by power companies and manufacturers, and see if there are any points where FES islacking in its activities.

8. Overview of the Peer Review Results9An overview of the peer review results is as follows.

The nuclear power division of the FES Kawasaki block led the construction of the Tokai
Power Station as a “front-runner.” Also, while fully utilizing areas of remote handlingtechnology in which it has excelled - built up through “Fugen,” “Monju,” “HTTR,” andother projects, the division aims to develop a corporate culture that places importance on
quality, through the High Quality and Reliability (HQR) Committee and publishing the HQR
News.
Because the division believes that “providing products and services with excellent safety”
leads to development of a safety culture, the division has created a “Nuclear Power Division
Quality Policy” and an “HQR Activity Policy.”
For example, through “knowledge transfer meetings to share the experience of the design
division and manufacturing division,” “practical training for young employees called ‘the
Dojo [training hall],’" and “collection and reflection of past nonconformity events,” efforts
are being made for the knowledge transfer for the next large-scale project, and steady efforts
are made to send out high quality products to the world. Also, e-learning for all employees of
the Nuclear Power Division is being used to carry out vigorous education, and efforts arealso being made to raise awareness of safety culture.
In this way, it was confirmed that employees are striving on a daily basis to improve safety,
quality and technology; in observations of technology transfer meetings, morning meetings,
and with interviews with managers and staff.
Below are eight good practices and five suggestions for improvement that have been
identified from review results.
Please note that, from the perspective of nuclear safety, immediate actions are not requiredon these suggestions for improvement.
8.1.1 Good Practices(Organization and management)
Stimulation of communication through continuous use of HQR NewsHQR News has been published on a monthly basis since October 1999, and the 100th
issue is planned for January 2008. Through continuous publishing over this period,
10

HQR News has been improved through questionnaires; and, in addition to the initial
objectives of preventing careless errors and sharing quality information, it has also
effectively worked as a communication means for all personnel related to nuclear power,
including those on the site of the power station, HQR News has been useful in creating
an open company atmosphere.

Enhancing employee motivation with an award system
As an award system, there is a management quality award (annual award), a special
award, and a monthly MVP (monthly award). The monthly MVP of the nuclear power
division is given to individuals who have achieved good results in daily work related toquality, technology, customer satisfaction, and cost reduction based on the discussion
between managers and staff. Awards are given by top management at the monthly
general morning meeting. The interviews in the peer review also showed that this award
system was effective in enhancing employee motivation.

Reflection of information of reprocessing plant nonconformities in the next large-scale
project
A database was created of several nonconformity cases experienced with company
products in construction and commissioning of the JNFL Reprocessing Plant. Currently,
with the aim of preventing recurrence of similar cases, what should be reflected in thedesign library and the engineering manuals is being examined and organized; once theexamination is complete, this information will continue to be reflected on an ongoingbasis, in specific design activities of the next large-scale project.

Raising awareness of a safety culture through vigorous use of e-learning
Raising awareness of a safety culture is being aimed for through the e-learning
related to developing a safety culture, which had been taken by nearly all employees
related to nuclear power (93%). From here on, all new employees will also take thiscourse. The division thinks these awareness-raising activities are not just temporary, but
the idea of safety first should be continuously instructed, and put into practice in real
work.

(Education and training)11Knowledge Transfer with “The Dojo”
A system of practical instruction, “The Dojo [training hall]” is carried out in the Nuclear
Power Department of Kawasaki Plant to transfer technical skills to young employees, aspart of technical skill transfer activities for the plant overall. Transferees (trainees) andtransferors (trainers) are determined, and the technical skills that the company needs aretransferred in a systematic manner.

(Design and manufacturing)
Steady management of duties using the “Product Realization Plan and Action Check
Sheet”In the nuclear power division, a “Product Realization Plan and Action Check Sheet” isdeveloped to plan tasks and follow the status of projects, which covers the contract,
design, procurement, manufacturing and construction.

This sheet is used by all

divisions, including the design division, the development division and the engineering
division. By checking the implementation status of each step, projects are steadily
managed, so as to avoid omitting or skipping a work step. Moreover, the format is not
rigid, and improvements have been continuously introduced, such as adding check
items, etc.

Improving level of completion of a nuclear power product using SVP (Self Verification
Point)In addition to the inspections by the manufacturing division in charge of quality
assurance, the design or engineering division carry out inspections independently, fromthe customer’s perspective, prior to customer inspection. This practice improves thecompletion level of the product and contributes to preventing nonconformities in thecustomer inspection.

(Preventing human error)
Effective use of hiyari-hatto (near-miss) cases in the manufacturing division
Near-miss cases in testing and inspection of important equipment of the Nuclear Power
Department of the Kawasaki Plant are collected from daily reports and are put into a
database. This contributes to the prevention of similar nonconformities reoccuring, by
reflecting such information in testing and inspection procedures when manufacturing
12

similar equipment in the future.
8.1.2 Suggestions for Improvement(Organization and management)
Systematic collection and effective use of event information
While information on events outside the company - including oversea events - arecollected by each department, through meetings of the Japan Electrical Manufacturers’
Association, from newspapers, and the websites of other companies, there is room for
improvement in sharing the information with related divisions. Consolidated
management for obtained event information is desired, so as to utilize the information
more effectively.

Direct dialogues between top management and staff of the nuclear power division
The top management of the Nuclear Power Division communicates its policies, etc.
through documents and meetings, and their policies are reported from managers
regarding the implementation status of improvement activities based on the policies.
These policies are also known by the staff; however, there are few opportunities formutual communication through direct dialogue. Since the scandals to date of othercompanies were caused by the lack of continual direct dialogue between staff and top
management, an increase in the opportunities of direct dialogue between top
management and staff would be desired, considering the next large-scale project..

(Education and training)More effective use of the knowledge transfer meeting
A knowledge transfer meeting is jointly held by the Design Division and Nuclear
Power Division every month to share design information and bring about effective
management; for example, by reflecting good design experience in manuals, etc. With
the participation of divisions in addition to the Design Division and Nuclear Power
Division, and improvement of themes and management, the experience and knowledgeof other divisions could be shared more widely. An examination into expanding thetechnology transfer meeting on a developing basis is desired.

13

(Design and manufacturing)
Swiftly obtaining information related to revisions of laws, ordinances and codes
Information related to revisions of laws, ordinances and codes is obtained and managed
by the Quality Assurance Division. With respect to revisions of laws, ordinances andcodes, it is necessary to obtain such information in a timely manner, and it is desired that
efficient methods for swiftly obtaining the latest information be evaluated.

Collaboration between the Nuclear Power Administration Department and Nuclear
Power Department
Although the Nuclear Power Department of the Kawasaki Plant and the Nuclear
Power Administration Department are separated within the organization because of
their differing functions, these departments are sharing information with each other. For
example, the Nuclear Power Administration Department participates in the “Nuclear
Power QR Subcommittee” held by the Nuclear Power Division; and, the Nuclear Power
Department participates in design reviews of the Nuclear Power Administration
Division and knowledge transfer meetings. Looking toward the next large-scale project,
it is desired to have further collaboration, such as participation of the Nuclear Power
Department in the “HQR Subcommittee” held by the Nuclear Power Administration
Department.

14